Delays with Issue of Casino Licenses in New York Announced

By Jane Shaw Senior Editor Updated: 04/08/2024

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Delays with Issue of Casino Licenses

There was bad news recently for the many people who have been looking forward to downtown casinos in New York. According to recent reports, New York’s highly anticipated casino licensing project has hit unexpected roadblocks, with regulators announcing on March 25 that licenses for downstate casinos won’t be granted until late 2025.

Robert Williams, the Executive Director of the Gaming Commission, blamed various regulatory hurdles as the key cause for the postponement. He said that starting the application process prematurely without clarity on potential bidders would be counterproductive.

Various Challenges Cited by Officials

According to reports, a number of challenges have been cited by officials in relation to the reasons behind the delay.

One of the challenges that was highlighted was the intricate zoning regulations of New York City and the need for meticulous reviews of land use and environmental impact assessments. These reviews are set to continue well into 2024 and will then need to be followed by the necessary approval from a ‘citizens advisory council’ for potential bidders.

Robert Williams, the Gaming Commission Executive Director, said:

Staff believes the timeline accommodates the existing statutory requirements … and allows sufficient time for local zoning approvals, which will enable the best, most comprehensive plans for commercial casino development.

It was also reported that the state faces limitations when it comes to imposing casino fees until the 2025-26 fiscal year.

Delays to Cause Disappointment for NY Residents and Officials

Initially set for the first half of 2024, the anticipated bids for licenses have yet to materialize, according to reports. Adding to the delay in starting the application process is the requirement for companies to present a comprehensive funding plan, which is a demand that was deemed premature by Williams due to the current stage of proceedings.

The delays are set to cause huge disappointment in New York, not just for residents who are eager to enjoy the entertainment, but also for state officials because of the loss in revenue. Since sports betting was launched in the state, there has been a massive boost in state finances.

Many officials have been looking forward to a further boost from the licensing and opening of the downtown casinos.

However, now that these delays have been announced, it will take far longer than expected for the state to reap the benefits of the casino openings, including the financial benefits that come via licensing and taxation.

Once the licensing does go ahead and the casinos finally open their doors, it will benefit the state in various other ways. One of these is the creation of a huge number of jobs, as the casinos will be looking for employees and team members in all departments.

In addition, the opening of the casinos could bring a huge influx of visitors to the city eager to explore the new facilities. This will not only have a positive impact on the local economy but also on other businesses in the area, as they will also benefit from the increased number of visitors.